Cheapest Places to Live in Minnesota

Minnesota, known for its scenic landscapes, vibrant cities, and high quality of life, offers a range of living experiences. Landmarks such as the Mall of America, the Boundary Waters Canoe Area, and the Minneapolis Sculpture Garden highlight the state's attractions. The state's economy is diverse and robust, driven by sectors such as healthcare, technology, and manufacturing. Minnesota's tax structure includes relatively high income and property taxes, which can impact the overall affordability for residents. Despite recent inflation and rising food costs, Minnesota remains one of the more affordable states in the Midwest, especially in its smaller towns and rural areas. The combination of a diverse economy and manageable living costs makes Minnesota an attractive place for those seeking affordability and quality of life.

Affordable living in Minnesota can often be found in smaller towns and suburban areas where housing costs and everyday expenses are lower. These regions provide a more manageable cost of living, which is essential for maintaining financial stability. Affordability is a key factor in livability, as it allows residents to enjoy a comfortable standard of living without undue financial strain. Factors contributing to the cheapest places to live in Minnesota include lower housing demand in less populated areas, supportive local economic policies, and efficient public services. Utilizing C2ER's cost of living data helps to identify these affordable regions, ensuring that potential residents can make informed decisions. In a state known for its community spirit and economic opportunities, finding affordable living options enhances the overall living experience.

International Falls Population: 5,876 14% cheaper than Minnesota average

Med. Home Value: $105,700 Med. Rent: $679 Med. Household Inc.: $47,301

With a cost of living index that is 14% cheaper than the state average, International Falls is the cheapest place to live in Minnesota. This area offers residents a remarkable blend of relatively low housing costs, budget-friendly grocery prices, affordable utilities, and economical health care services, making it an attractive destination for those seeking to stretch their dollars further. Whether you're a young professional, a growing family, or someone looking to enjoy a more relaxed pace of life, International Falls provides an inviting and cost-effective environment to call home.

Worthington Population: 13,093 13% cheaper than Minnesota average

Med. Home Value: $129,900 Med. Rent: $786 Med. Household Inc.: $49,590

The second most affordable city in Minnesota is Worthington and stands out for its cost-effective lifestyle. With an overall cost of living that is 13% cheaper than the Minnesota average, overall goods and services, housing, utilities, transportation and health care costs fall within a reasonable range. Median household income levels are steady and come in at , which helps to increase the purchasing power of the local residents.

Albert Lea Population: 17,804 11% cheaper than Minnesota average

Med. Home Value: $102,700 Med. Rent: $728 Med. Household Inc.: $45,929

Albert Lea lands in the #3 spot for the cheapest cities to live in Minnesota, with a cost of living that is 11% cheaper than the state average. With home prices averaging and rental rates coming in around , it helps that household income levels average about , which assists with paying the mortgage or your monthly rent. Its robust public school system and accessible health care further enhance its appeal, making it a great place to settle down. The strong community spirit and ample recreational opportunities add to its charm.

Marshall Population: 13,604 11% cheaper than Minnesota average

Med. Home Value: $156,000 Med. Rent: $684 Med. Household Inc.: $48,236

The cost of everyday grocery items, goods & services and of course housing, can have a significant impact on the overall cost of living in any area. Marshall offers a picturesque and affordable living environment, with a cost of living that is 11% cheaper than the state average. Everyday items like ground beef , eggs , coffee and pizza are all fairly reasonable compared to most other cities, which helps reduce those grocery bills. Home prices are also fairly affordable (compared to the state average), coming in at around .

Crookston Population: 7,711 10% cheaper than Minnesota average

Med. Home Value: $135,600 Med. Rent: $650 Med. Household Inc.: $49,321

For those wanting to live well on a budget, Crookston is ideal, with a cost of living that is 10% cheaper than the state average. Reasonable housing prices (compared to the Minnesota average) of and rental prices of are paired with economical goods and services and a range of free or low-cost recreational activities. The city's proactive economic development initiatives also ensure a steady stream of job opportunities, making it a smart choice for those prioritizing financial ease.

Virginia Population: 8,421 10% cheaper than Minnesota average

Med. Home Value: $90,800 Med. Rent: $634 Med. Household Inc.: $41,576

Virginia comes in at #6 on our list of the cheapest cities in Minnesota and is a haven for those seeking affordability without sacrificing convenience. The city is known for its discount shopping centers and budget-friendly dining options and has a cost of living that is 10% cheaper than Minnesota. The city's local markets provide fresh produce and other groceries at reduced prices, while parks and community centers offer free entertainment and leisure. This city is perfect for enjoying a high quality of life at a low cost.

Fairmont Population: 10,042 9% cheaper than Minnesota average

Med. Home Value: $137,300 Med. Rent: $640 Med. Household Inc.: $49,402

With its cost-effective lifestyle, Fairmont is an attractive destination for those looking to live affordably. The city boasts suitable housing costs, affordable healthcare, and a variety of budget-friendly dining options. The community is welcoming and vibrant, providing residents with a rich social life at a fraction of the cost. Median income levels come in at , which provides financial stability, purchasing power and increases the quality of life in the city.

Austin Population: 25,180 9% cheaper than Minnesota average

Med. Home Value: $114,100 Med. Rent: $815 Med. Household Inc.: $48,730

A lower cost of living allows individuals to manage their expenses more effectively, reducing the risk of financial stress and debt. When essential costs such as housing, food, transportation, and healthcare are more affordable, people can achieve greater financial stability and resilience. Austin fits that mold and has a cost of living that is 9% cheaper than Minnesota.

Montevideo Population: 5,071 9% cheaper than Minnesota average

Med. Home Value: $100,600 Med. Rent: $648 Med. Household Inc.: $51,953

Lower living costs can lead to a higher quality of life by making it easier for people to afford comfortable housing, nutritious food, and access to healthcare. It can also provide opportunities for better education, recreational activities, and community engagement, contributing to overall well-being. Montevideo is one of the most affordable cities in Minnesota, and has a cost of living that is 9% cheaper than the state average.

Waseca Population: 8,892 9% cheaper than Minnesota average

Med. Home Value: $130,500 Med. Rent: $770 Med. Household Inc.: $50,587

With a cost of living that is 9% cheaper than Minnesota, Waseca comes in at #10 on our list of the cheapest places to live in Minnesota. Financial stress is a significant factor affecting mental and physical health. By lowering the cost of living, individuals can experience reduced anxiety related to meeting monthly expenses, thereby improving overall health and well-being. The ability to afford basic necessities without constant worry contributes to a more balanced and fulfilling life.

Full list of the cheapest places in Minnesota

Rank	Location	Population	COL Index	Med. Home Value	Med. Household Inc.
1	International Falls	5,876	86	$105,700	$47,301
2	Worthington	13,093	86	$129,900	$49,590
3	Albert Lea	17,804	88	$102,700	$45,929
4	Marshall	13,604	88	$156,000	$48,236
5	Crookston	7,711	89	$135,600	$49,321
6	Virginia	8,421	89	$90,800	$41,576
7	Fairmont	10,042	90	$137,300	$49,402
8	Austin	25,180	90	$114,100	$48,730
9	Montevideo	5,071	90	$100,600	$51,953
10	Waseca	8,892	90	$130,500	$50,587
11	Thief River Falls	8,792	91	$143,900	$52,168
12	Hibbing	15,923	91	$111,900	$47,030
13	Bemidji	15,277	91	$141,300	$36,250
14	New Ulm	13,209	92	$145,600	$58,839
15	Brainerd	13,423	94	$127,700	$36,699
16	Winona	26,772	95	$153,500	$48,653
17	Glencoe	5,488	95	$163,600	$60,609
18	Fergus Falls	13,754	95	$142,700	$42,659
19	Owatonna	25,716	95	$171,400	$66,037
20	Little Falls	8,663	95	$143,500	$40,044
21	Willmar	19,728	96	$140,800	$51,884
22	Detroit Lakes	9,229	96	$188,500	$51,185
23	Cambridge	8,975	96	$167,200	$58,021
24	Faribault	23,853	96	$169,900	$54,832
25	Red Wing	16,366	96	$179,200	$57,056
26	Kasson	6,425	97	$192,800	$78,353
27	Litchfield	6,640	97	$151,500	$51,352
28	East Grand Forks	8,555	97	$205,800	$58,438
29	St. Peter	11,934	97	$178,000	$54,455
30	Grand Rapids	11,218	97	$153,200	$48,247
31	Hutchinson	13,935	98	$157,200	$56,083
32	Moorhead	43,409	98	$200,300	$61,220
33	Cloquet	11,994	99	$151,600	$54,011
34	Mankato	42,685	99	$188,900	$52,411
35	St. Cloud	68,390	99	$158,500	$50,335
36	Columbia Heights	20,247	99	$193,700	$60,778
37	Morris	5,320	99	$167,200	$58,628
38	Isanti	6,016	99	$190,700	$73,580
39	Stewartville	6,123	99	$190,100	$78,312
40	Brooklyn Center	30,755	99	$187,400	$64,023
41	St. Paul Park	5,404	99	$204,800	$84,167
42	Waite Park	7,719	99	$160,700	$43,867
43	Lake City	5,050	100	$178,900	$60,481
44	South St. Paul	20,132	100	$207,200	$63,204
45	North Mankato	13,903	100	$207,600	$71,023
46	Duluth	85,852	100	$167,300	$54,084
47	Spring Lake Park	6,582	100	$199,300	$71,958
48	Robbinsdale	14,393	100	$213,100	$73,510
49	North Branch	10,585	100	$212,400	$85,213
50	St. Joseph	7,448	100	$172,200	$67,350

Methodology

To formulate the list of the cheapest places to live in Minnesota, AreaVibes utilized comprehensive data from the Council for Community and Economic Research (C2ER) cost of living index. The report is released annually and offers a detailed comparison of living expenses across various urban areas. The data is meticulously gathered by over 300 independent researchers, ensuring a high level of accuracy and reliability. The C2ER index encompasses more than 60 goods and services, categorized into six essential areas that significantly impact the cost of living. These categories and their respective weightings in the index are as follows: goods and services (33%), groceries (13%), health care (5%), housing (30%), transportation (9%), and utilities (10%).

Map of Cost of Living by State

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The map above is a great way to help you discover the most affordable states across the U.S. By highlighting states with the lowest cost of living, this map provides an in-depth look at where you can get the most value for your money. By visually representing this data, the map allows users to easily compare different regions and make informed decisions about potential relocations or investments. Additionally, it provides valuable insights into the economic conditions and lifestyle factors that influence these cost of living statistics. Whether you're planning a move, considering a new job, or simply curious about the economic landscape, this map is a useful resource for understanding and navigating the financial implications of living in different states.